Submitted by

TIASA PAL (BFT/20/554)

ARYAN KESHRI (BFT/20/720)

Submitted by

PROF. GANGADHAR MALIK

ABSTRACT

1. Purpose – The purpose of this article is to provide an overview of Augmented Reality (AR) and Virtual
Reality (VR) in retail by identifying, outlining and discussing the definitions of AR, important AR
applications for retailers, and the value that AR brings to retailers and consumers.
2. Design/Methodology/Approach - The paper is based on a review of AR research in the business literature
and an overview of current AR and VR applications in retail.
3. Findings – The paper presents a synthesised definition of AR, its main elements and how it differs from
virtual reality. The results show that modality, synchronous ownership control and re-workability of the AR
experience system positively affect the consumer's relational experience.
4. Research limitations/implications – This study highlights the importance of understanding the implications
of the development consumer technological interface systems such as AR, as a source of technologically
mediated modality, become part of, if you will, an extension of the consumer's body.
5. Originality/value – Using immersive technologies, this study shows that AR allows the consumer to see a
tangible extension of their authentic self and physical self while shopping online, thereby enhancing the
consumer's online shopping experience.

Augmented reality (AR) and virtual reality (VR) have emerged as rapidly developing technologies used in
physical and online commerce to enhance the sales environment and shopping experience. The development of
virtual clothing simulation software has played an important role in the fashion industry. This study also proposes
a system that uses a depth camera to record the shape of a user standing in front of a large screen. The screen can
present the user to fashion concepts and different clothes adapted to his body. The implementation of augmented
reality (AR) settings is an extraordinary opportunity to enrich the value of the omni-customer brand experience
of all customers, especially in the fashion store. With the recent advances in Virtual Reality (VR) and Augmented
Reality (AR), a new concept called Mixed Reality (MR) or Hybrid Reality has been developed that combines the
concepts of both AR and VR.

1. INTRODUCTION
Technological changes and the widespread use of digital technologies are transforming retail and the shopping
experience. AR as a technology "combines real and computer-generated digital information with the user's view
of the physical world so that they appear as a single environment." AR typically captures real-world data, usually
via a webcam or mobile phone digital camera. Using devices such as smartphones or tablets, wearables (headset),
projectors or fixed interactive screens, It can provide a creative and innovative way to engage consumers by
allowing them to interact with virtual products. In contrast, VR uses a wearable device (typically a headset) that
blocks the sensory experiences of the "real world" to provide a more engaging and innovative shopping
environment, immersing users in a virtual 3D entertainment world. The digital signage, online product
customization and visualization, interactive visualization and other direct customer experiences in both online and
physical stores provided by these technologies play an important role in achieving significant customer appeal,
and these advanced technologies also provide an even better shopping experience for customers. Brand image is
enhanced by creating product visualization and seamless communication between consumers. On the hardware
side, multi-sensor radios like the Microsoft Kinect and ASUS Xtion have brought depth scanning to the masses,
enabling accurate full-body depth maps and motion detection with support frames. In addition, VFRs rely heavily
on augmented reality (AR), which uses specialized software and hardware to bridge the digital and physical worlds
by embedding digital information into real-world video to create immersive scenes in real time.

3D scanners and 3D virtual clothing simulation programs were developed, and such technology was combined
with IT, digitizing the fashion industry. The development of virtual clothing simulation software has led to
continuous technological improvement in systems that can practically adapt 2D design work to 3D design. The
AR industry is estimated to reach $56.8 billion worldwide by 2020, and the retail market is expected to reach
nearly $7.9 billion worldwide by 2023. Therefore, the research below examines the key opportunities and
challenges for consumer response to current technological innovations, including mobile, in-store and new
technologies.

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2. LITERATURE BACKGROUND

2.1. Developments of Research and Applications of AR and VR in Retail

From the 1990s, mobile AR and wearable computing began to be developed and adopted, attracting increasing
attention along with VR, 3-D technology, and mobile technology. the technology has also been applied in the
context of retail, gaming, medicine, navigation and education.

Entertainment giant Blockbuster was an early adopter of VR to create a virtual warehouse through simulation,
and in 1999, Burger King used 3D technology to simulate a new retail store concept and fully understand the
design, enabling interaction. Early applications of AR in retail include virtual fitting using personalized or non-
personalized virtual models that simulate the appearance of clothing product combinations on the body by rotating
the model through front and back views that can be zoomed. The results of Kapetanakis (2012) consist of some
types of consumer-based communication, customization, personalization and AR, such as the IKEA AR program
that can measure the width and height of a real-life room through a camera lens and then render. a very precise
piece of furniture in relation to the rest of the real environment.

Author Xueshi et al. discussed enabling a portable VR experience that combines edge/cloud computing devices
performing remote rendering. Author Ramanujam and Srinivasa proposed an AR browser design that renders web
pages using various AR headsets without being obstructed by objects in the viewing world. The browser can
provide layouts that are customized for web pages when viewed with an AR headset. It focused on simple objects,
such as a QR code, which are mainly related to the software capabilities of the web client, ensuring the privacy
and security of the end user.

Zhang et al. jointly presented the development and evaluation of VR-AR for the creation of virtual Exercise
Environments (VEEs). People with lower body disabilities can interact with the virtual environment by doing
exercises. The game is designed with exercises to make the virtual environment more interactive and fun. Their
VEE implemented the concept of pitching practice using AR technology.

2.2. Current Technological Innovations Transforming the Consumer Retail Experience

The mobile revolution has transformed multi-channel retailing into omni-channel retailing. The opening hours of
stores no longer restrict consumers due to the spread of mobile devices, the change of traditional space and time
restrictions increases the flexibility of consumers. Popular social media platforms such as Facebook and Twitter
allow consumers to share and express their thoughts and opinions about products and services at any stage of the
retail process.

2.3. Emergent Technologies

VR, which stands for Disruptive Technology, enables new types of global interaction through HMDs (head-
mounted displays) such as the Oculus Rift, HTC Vive and Samsung Gear-VR. Today, consumers use mobile
devices in-store to compare prices and products to find a better deal by shopping in-store by scanning a barcode
or searching online. The AR market is predicted to generate $90 billion in revenue by 2020. Augmented Reality
Virtual Try-On was launched in 2009, bringing an impressive amount of excitement for fashion retailers to use
this technology. Virtual Try-On innovation is advancing and 3D imaging costs are decreasing and becoming more
computationally intensive.

2.4. Analysis of the Related Work:

When a customer decides to buy clothes, the VTO mirror offers the opportunity to get dressed instead of having
to do it manually. The client's body surface is scanned by the Kinect sensor so that the clothing simulation can see
the user in the mirror in addition to the necessary important information such as the user's body measurements
and characteristic points. virtual human body.

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3. PROBLEM STATEMENT
Customers who want to buy new clothes often want to test the products before buying them to decide whether
or not they are perfect for their needs. On the other hand, the time-consuming method is usually done by putting
on the clothes/accessories and reflecting the view in the mirror to get the true absolute look of the clothes. we
can conclude that this long-used procedure is a major disadvantage in the fashion retail market, because
customers would have to go through this process every time they want to test the clothing product themselves.
On the other hand, it can also be a disadvantage for shop owners. Many customers come to the store every day
to buy new clothes; However, the customer must personally test these products for their own personal evaluation.
So, this trial procedure would certainly have several disadvantages for shops, because a large number of products
are tested and not bought every day due to various trends that can damage the products and lose the technology.
Another problem can be faced by employees who have to repeatedly return the garment to its original location
to show it to other customers. Another problem that customers suffer from is searching for the desired clothing
in several places without knowing exactly if the desired clothing is available in several stores. For example, a
customer wants a specific clothing size, but it is not available in the current store. Therefore, it is necessary for
the customer to find a specific garment in another store, which can be a tiring and unpleasant process.

4. WORK METHODOLOGY
For the key role of augmented reality, where the user looks at a virtual object on his body using a front/back
camera to judge how it looks on him, see Figure 1 and Figure 2. For example, the user captures a photograph of a
wrist watch in front of them, the application will then process the captured image, extract’s the item and turns it
into a virtual object. The rear camera is then placed on top of the user's arm and the watch is augmented to their
wrists, showing what the watch actually looks like without actually putting it on. The same method is applied to
other fashion-related products such as footwear, headwear, hands, make-up, etc.

5. METHODS AND MATERIALS

A review of all selected papers and an analysis based on the three research questions:

RQ1. What are the main features of AR?

RQ2. What AR applications are relevant for retailers?

RQ3. What kind of value may AR provide for consumers and retailers

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5.1. What are the main features of AR?

AR: Virtual reality uses information technology to create real-world environments and enables interaction
between humans and computers through their participation in the virtual world. Augmented reality technology
that extends real space-based
information by integrating
virtual images. Such
technology can be applied in
various real environments
such as location detection,
organism detection, artificial
intelligence, materialization
of the five senses and mobile
technology.

AR vs VR

The use of AR is mainly based on the reproduction of 3D images of virtual objects. It consists in the reproduction
of virtual objects in a real environment, while in VR, the reproduction of the object is developed through devices
that users must use, such as smart glasses. AR allows virtual elements to be superimposed on the real and physical
world in which the user is immersed, while in VR, the user is fully immersed in the virtual world with virtual
objects.

5.2. What AR applications are relevant for retailers?

Three major AR applications used by companies were identified: online web based, in-store and mobile app, as
shown in Table IV.

5.2.1. Online web-based applications: This allows customers to experience an immersive shopping
experience while sitting comfortably in front of their computer. The computer screen becomes an AR
mirror, with which customers can instantly see how the clothes look in real time and adjust the size and
color of the clothes with just a wave of the hand. For example, Ray-Ban Virtual Mirror is one of the first
web-based AR applications developed for retail.
5.2.2. In-store applications:

In-store AR applications are

based on projection-based
AR interfaces that can
provide consumers with an
enhanced, immersive and
interactive experience.
Several AR shopping
applications are mainly based
on a fitting room, which
allows users to try on clothes
virtually in front of an
"augmented mirror",
reducing the time needed for
the user to decide whether the
clothes fit in the virtual
mirror. Just take a picture of
their clothes from any angle
and compare them with other
clothes or share your
impressions with other
people through the social
application installed in the

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virtual mirror. This allows customers to receive information about their body shape in relation to the clothes they
buy.

5.2.3. Mobile applications:

MAR applications allow users to explore the surroundings. The smartphone camera allows users to integrate
physical and augmented elements, interact with digital content, and search and evaluate products in new ways.

5.3. What kind of value may AR provide for consumers and retailers?

AR can help enrich the retail environment, both online and in physical stores, by providing different value to
consumers and retailers. This benefits fashion retailers in the following ways: customer engagement, brand
awareness, customer satisfaction, customer retention, cost reduction, sales growth

5.3.1. Value for consumers

AR empowers consumers and potential users to interact and touch products in enhanced ways, increasing product
feasibility and purchase confidence. With AR, customers become co-designers of what they buy.

5.3.2. Value for retailers

AR applications allow retailers to change or redesign store spaces by promoting different perceptions and feelings
of customers and using several elements related to the five senses. Retailers can use AR to offer customers virtual
try-on to help them find products that best suit their needs. Through AR, retailers have opportunities to increase
sales volumes through mobile, web-based and in-store applications, providing personalized advance pricing.

6. NATURAL INTERACTION SENSORS AND SUPPORTING SOFTWARE

PLATFORMS
Natural Interaction (NI) is the ability to command and control the digital world with hands, body and voice,
making traditional peripherals such as remote controls, keyboards and mice obsolete. Natural User Interfaces
(NUIs) are a significant departure from the traditional desktop model, as they use body motion recognition to
navigate apps and perform actions such as browsing, selecting, adding to cart, and checking out. Some of the
main players in the virtual gaming space industry are shown in Fig. 3., where current technological developments
in several fields are converging. Currently, the main NI players in the consumer sensor are Microsoft Kinect and
Asus Xtion, both of which use Prime-Sense's PS1080 chip in competing applications.

These multi-sensors collect synchronized streams of audio, video and depth data that can be processed to suit a
wide range of applications using multiple software frameworks. The live version basically adds an SXGA RGB
camera for live image/video
capture. Both Kinect and
Xtion PRO LIVE use infrared
sensors, adaptive depth
sensing technology, color
image recognition and audio
streaming to record the user's
image, movement and sound
in real time, making user
tracking more accurate.
Software environments that
support both sensors allow
developers to create custom
gesture-based applications
without writing complex
programming algorithms.

Fig.3. Various Players in the Virtual Fitting Room Area

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7. RETAILER’S ADOPTION OF AR AND VR
VR, critics have argued that while the technology helps improve the in-store experience, it is more of a means
to attract consumers' attention than a functional in-store solution. it takes up a lot of floor space and resources
and is used by only a few buyers each day, especially when training is required to familiarize salespeople with
new tools to properly communicate and promote to potential users. Retailers have also embraced the benefits
of AR and VR, including overcoming operational barriers, saving time and reducing costs. For example,
Sainsbury's use of VR technology reduces development costs and improves supermarket renovations with
interactive VR headsets.

8. RELATED WORKS

Google Trends compares the terms virtual reality, augmented reality and online store and provides a trend line
over five years. Fig.4. shows that at the beginning of 2020, the number of combinations of these keywords in
Google increased dramatically. Alibaba's Buy VR platform, LensKart, VR shopping kiosks, Nykaa, Amazon's
AR View and several
furniture stores have
now created a VR/AR
retail platform online to
provide an interactive
and immersive
shopping experience.
The LensKart app offers
online frame selection
based on the customer's
facial fit, and the Nykaa
apps offer a selection of
makeup products based
on the customer's skin
tone using virtual fitting
based on AR technology. Fig.4. Google Trends Results for Keyword Searches

8.1. Digital Clothing and i-Fashion System

Digital clothing technology aims to reproduce clothes in 3D. Clothing production methods can be divided into
analog, semi-digital and digital methods. The analog clothing method uses conventional fashion design and
clothing production techniques
using pattern production to
produce clothing by cutting and
sewing panels. Semi-digital
clothing methods combine digital
technology with various analog
clothing processes. With this
system, Fashion design is realized
by design CAD software and
panel production by template
CAD software. Fig. 5 shows a
method for making a digital dress,
where a computerized garment
reproduction step is added to the
semi-digital method. Fig.5. Digital Clothing Process for Producing Clothes

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The i-fashion system displays the results of the simulation program suitable for the avatar. It shows the user's
body on a large screen, capturing a 3D scan of the user's entire body. The goal of the i-fashion system is to bring
together the technology needed to
design, plan, produce and market
clothing, combining textile and fashion
skills with technology. It can facilitate
production using human body models
and web curtain simulation using tools
such as ActiveX and Java. Figure 3.
shows that scanning a screen can take a
long time when displaying a
department store

.Fig.6. i-Fashion Department Store Presentation

9. AUGMENTED REALITY BASED MAGIC MIRROR FASHION

COORDINATION SYSTEM
Current fashion coordination systems use virtual environments and QR codes. A coordination system that can
effectively coordinate different when the user approaches or touches the screen, using an augmented reality-based
magic mirror, he activates the coordination system. The information displayed on the screen consists of real-time
3D clothing, makeup and hairstyle simulation, which can instantly deliver the fashion information requested by
the user. the global smart mirror market is forecast to grow from 10 percent in 2018 to 15 percent in 2023, driving
retail sales to $1.2 billion.
Various environmental factors can significantly affect the face image captured by the camera. In the face design
and make-up phase, face contour images are extracted from the user's photos, and augmentation is performed by
synthesizing the extracted images and hairdressing images. Magic mirror's intelligent fitness fashion coordination
allows consumers to save time and reduce physical stress. Consumers can quickly choose the right products for
themselves without trying on different clothes. Figure 8 shows the map of a magic mirror fashion coordination
system based on augmented reality.

Fig.7. Configuration Map of the Augmented Reality Based Magic Mirror Fashion Coordination system

UNIQLO is a prime example of a high street retailer that invested in magic mirrors for their San Francisco flagship
store when it opened in 2012. UNIQLO “created a seamless retail experience that allowed consumers to try on
the full range of colours for a variety of UNIQLO Fall/Winter jackets”.

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10. APPLICATION OF AR-VR IN DIFFERENT DOMAINS

1. Gaming: Augmented Reality provides portable games, such as where the user can play and interact with virtual
objects in the real world, providing a gaming experience where the user can identify with the real world
environment and the augmented virtual object. After the release of Pokemon Go, AR-VR has become one of the
main phenomena in the gaming industry. The game made demonstrated the true potential of AR.

2. Education: Augmented reality animated content in classroom lectures or laboratory sessions allows students
to understand learning concepts more dynamically and thus motivates them to learn by providing additional
information on topics in different ways.

3. Healthcare: In medical surgery, AR can be used to visualize invisible body parts and simulate a 3D object of
a specific body part to be operated on, especially for medical classroom training. Pharmaceutical companies can
come up with inventive ways to use AR technologies to illustrate how a particular drug works in a 3D view,
instead of simply providing long descriptive information written on drug bottles.

11. CONSUMER’S ACCEPTANCE OF AR-VR

The Technology Acceptance Model (TAM) and its more recent extensions have traditionally been considered
the primary tool for measuring the differences between technological innovations that both consumers and
organizations should adopt and those that they actually accept and use. TAM focuses on two essential aspects,
perceived usefulness and perceived ease of use, in determining a person's intention to use new technological
innovations. According to TAM, usage time acts as a mediator of consumer commitment to new technologies.
Consumers respond positively to the entertainment and experiential value, communication and contribution of
AR to accelerate purchase decision-making processes, including its functional and hedonic role. AR helps to
reduce the perceived cognitive risk due to the uncertainty of not seeing the products and their combinations.
positive consumer response to VR technology in physical stores, which improves the shopping experience and
makes it more attractive than traditional merchandising techniques. Perhaps unsurprisingly, the value of online
fashion sales has doubled since 2012, with online sales accounting for 24 % in 2017, up from 7 % in 2013.

12. VIRTUAL FITTING ROOM (VFR) APPLICATIONS

VFR applications automatically generate accurate body scan data to ensure proper quality. These "Body Shape"
characters can be modified for many different purposes. One of them is to create accurate 3D avatar-type models
of the customer's body, to which clothes are fitted as an alternative to the buyer's image. Another option is to
combine 3D scan data with data such as gender and age to essentially query virtually unlimited clothing databases
across multiple retailers. Finally, smart apps can also alert users to wish-list items in nearby stores, so local
shopping and deal-finding can be usefully combined.

12.1. Kinect Shop from Razorfish Emerging Experiences

Kinect Shop is an online AR shopping platform created by Razorfish's Emerging Experiences team. Based on the
Xbox Kinect sensor, the platform transforms the customer's real-life movements into visible movements on the
screen so they can browse through an unlimited virtual rack of accessories and select clothes to try on in real 3D
on a big-screen TV. virtual mirror Fig.8 (a). In addition, customers can use Kinect's RGB camera to create an
album with different looks from multiple angles to share with friends via social networks, collect votes (likes and
dislikes) and also save their wish lists to their smartphones shopping

12.2. Bodymetrics

In a partnership with PrimeSense, Bodymetrics, a London-based technology company, has created 3D body
scanning solutions for both retail stores and home customers. The retail version of the body scanner uses eight
PrimeSense 3D sensors to map the customer’s body for quick and accurate calculation of 100 measurements which
are subsequently used by “Fit Stylists” to find garments that best suit the customer’s unique shape and size. The

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home buyer solution employs the same PrimeSense-based NI sensors like Microsoft Kinect and ASUS Xtion to
allow shoppers to have their body data scanned in and saved to an on-line profile.

Fig.8. Mainstream functionality for reviewed Virtual Fitting Rooms

Bodymetrics partnered with the Razorfish Emerging Experiences team to incorporate this technology into an on-
line shopping platform which uses the saved profile of a customer to (a) create an on-screen customer-sized avatar
which follows the customer’s motions through the NI sensor and (b) virtually try on various clothing types such
as jeans, dresses, skirts and tops from connected partners, as seen in Fig. 8.(b).

12.3. VIPodium from Fitting Reality

Moscow-based Fitting Reality has created VIPodium, an AR fitting room application and shopping system which
parses full body scanning image data to detect the physical outlines of a shopper and create a ShapeID, with which
to query the product catalog of 3D virtual garments to offer pieces of clothing that perfectly fit that particular
customer. A 3D interface allows intuitive navigation through the selected garments and item selection, after which
a real-time video simulation of the customer “wearing” a 3D copy of a garment is created on screen so that the
customer can assess the quality of fit and the style/matching aspects from multiple angles. VIPodium versions
exist for home shoppers and for in-store usage (Fig. 2(d)).

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13. EXISTING AR & VR PRODUCTS AVAILABLE IN THE MARKET
This section includes comparative analysis of various existing AR/VR products available in market which are
revolutionizing the upcoming technologies in the near future (Table 1).

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14. AI AND EXTENDED REALITY OF FASHION INDUSTRY AFTER COVID-19

Covid19 has raised the importance of digital as evidence. Most of the stores were closed, so fashion brands had
to invest everywhere in social media and online stores. The services offered by the company ORDRE are
numerous and avant-garde. An example is the virtual catwalk. ORDRE can create a cutting-edge virtual reality
fashion show: the company can provide VR headsets for retail buyers to watch fashion shows and performances
from a front-row seat anywhere in the world. Another service offered by ORDRE is a 360-degree virtual
showroom that allows fashion brands to realistically recreate their collections. Shoppers can see details of fabrics
and silhouettes, as well as manipulate 3D models and rotate, zoom and see every part of the garment. Many stores
were closed and the quarantine during the pandemic forced fashion customers to shop online. But even online
shopping was considered difficult as health restrictions delayed packages and it was not safe to send unwanted
items to the post office. In general, the main reason for package returns is incorrect fit, and VR and AR could be
a good solution to reduce unnecessary trips. Seeing a product in VR or AR would not only be useful for size
testing, but could also be used to present products more realistically, making customers buy more with less
uncertainty. An example is the GAP AR application. An augmented reality app called GAP "DressingRoom"
allows customers to try on clothes on any Google Tango-enabled device: customers can customize an avatar based
on their body type and size and see how different clothes look on them. different angles. Also, if they are satisfied
with the product, they can buy it directly from the app.

15. FAMOUS BRANDS AUGMENTED: TRY-ON APPS, VR SHOWS AND MORE

1. Zara: The leading Inditex brand disrupts the concept of window shopping with its 120 augmented reality
displays. By holding your phone up to a special sensor, you can see a catalog model demonstrating a
selected look. You can also buy a displayed item literally right through the window, by clicking on its
image on the phone screen.
2. Ralph Lauren: Ralph Lauren announced a collaboration with ZEPETO – a metaverse virtual game.
Together they will create a collection of clothes and a thematic virtual world. The users will be able to
try iconic Ralph Lauren looks, featuring over 50 unique items. In addition, the collection includes special
items such as two limited edition skateboards.
3. H&M: Recently, this fast fashion giant presented 6 AR image filters to promote its new streetwear
collection. Instagram users can apply these filters to augment one of the music videos accompanying the
campaign. Users can then share their version of the song with friends and followers, thus spreading the
word about the collection.
4. Chanel: Recently, Chanel organized an event called Augmented Reality Snow Globe to celebrate
Christmas and engage with customers. For four days, a New York boutique hotel was turned into a festive
semi-digital shopping area. Those outside the city could “attend” the event by downloading a special app
or using a Snapchat lens. The show helped bring many existing and potential customers closer to the
brand.
5. TopShop: Topshop uses augmented reality fitting-rooms for their stores. This means customers can skip
a visit to a normal dressing room and instead try some new clothes without taking off the ones that they’re
wearing.
6. L’Oreal: L’Oreal recently bought Modiface, an AR makeup app, before embarking on a collaboration
with Facebook. The aim is to use augmented reality to promote their products via Facebook’s camera
services. Users can now see the effects of beauty products, including makeup, without actually putting
them on.
7. Nike: It uses augmented reality and virtual reality in their physical stores. Customers can scan items like
shoes or clothing to view information, or they can enter a VR world to experience the different
steps in Nike's supply chain so they understand how and where items are being made.
8. Bloomingdale's allows shoppers passing by its store to try on glasses virtually on the
street by pointing the glasses at the wearer's nose.
9. Tommy Hilfiger and Dior, have embraced VR headsets, and the latter is installing
Dior Eyes in select stores to transport shoppers to 3D shows and virtually reveal the
craftsmanship behind product creation.

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16. FINDINGS
Augmented reality can be used in fashion retail as a better experience for customer purchase decisions, which can
attract customers to the store, resulting in increased cross-selling and profit, as well as improved customer access
to the store and improved brand positioning. Consumers find AR devices engaging, impressive and interesting.
To achieve a higher purchase intention, it is necessary to strengthen the interaction with the product in AR, because
it improves the attractiveness of the products. Young technology consumers are very willing to use augmented
reality when buying fashion products. Social influence plays an important role in influencing the acceptance of
augmented reality.

17. CHALLENGES AND OPPURTUNITIES FOR INTEGRATING

TECHNOLOGICAL INNOVATIONS
The change in consumer shopping and buyer behaviour has brought new challenges and invaluable opportunities
for retailers to connect with a digitized population.

17.1. Social Engagement and Connectivity

New AR developments offer mobility and sociability and a direct link to social media to create a positive
relationship with the digitized population. For example, mobile AR in the store encourages consumers to
immediately share personal experiences with the online community, additional information and virtual product
presentation increase confidence in sales and purchases.

17.2. Human Interaction and Communication

The integration of new technologies requires interpersonal interaction and communication, because unfamiliarity
with these technologies often makes consumers afraid to try them for fear of unusability and complexity. In
addition, clear instructions, video presentations and payment compatibility determine the consumer's
understanding of his abilities and desires.

17.3. Results

AR interfaces burden users with a higher cognitive load compared to traditional product presentations. One
possible explanation for the high cognitive load is that augmented reality users generally have to process more
information in both the physical and virtual worlds. On the other hand, and contrary to this, several studies have
found that AR has the ability to reduce users' cognitive load and improve users' cognitive fluency through real-
time and interactive product presentations that support the mental work of product visualization, which in turn
can lead to to positive attitudes, greater decision comfort, willingness to pay and purchase intentions. It has been
found that the presence and interaction with AR can enhance the hedonic experience (eg, fun, entertainment,
playfulness and enjoyment) in stores or retail applications. Hedonic experiences provided by AR can increase
store attractiveness, positive attitudes, satisfaction, brand commitment, willingness to share personal information,
purchase intentions and intentions to return to the AR application, and word of mouth intentions.

18. ISSUES FOR IMPLEMENTATION AR-VR

1. Special hardware requirement: The biggest problem is the special hardware requirement for the initial setup. It
requires a special space and environment for VR applications.
2. Lack of legitimate use cases: Even when the price factor is controlled, AR-VR faces another major hurdle in
the form of creative and unique content. The current R&D mainly focuses on the gaming and entertainment world.
The content to be developed must be from the perspective of the consumer.
3. Mobility problem/Miniaturization Issues: when it comes to the VR experience is mobility. Limited experience
with VR products restricts free movement due to the many wires connected to HMDs (head-mounted displays) or
other portable devices.
4. Security Concern: AR-VR technologies that has not yet been properly addressed is related to cyber security. In
attacks, there is a possibility that the virtual environments are hacked and the attacker can use, change or modify
them and destroy the virtual environment.

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19. FUTURE RESEARCH
Research highlighted that the impact of AR applications can vary depending on the consumer's purchase
orientation. AR technologies can provide several additional functions such as interactivity and modality. Thus,
future research could build on our original framework to consider how different AR features can be used to create
different experiential values that
attract and add value in different
retail contexts. An analysis of
online descriptions of AR shopping
apps available through the Google
Play app store revealed that AR
apps appear to provide primarily
extrinsic or utilitarian value,
although the apps often provided at
least some other intrinsic value.
Fig.9. shows how our model could
be extended to include the above
components. this framework helps
guide theory that can guide retailers
in developing successful AR
applications.

20. CONCLUSION
Combining strengths and skills to develop marketing and retail strategies that effectively enrich and enhance the
consumer shopping experience by comparing viewpoints, sharing insights and knowledge about consumer
characteristics towards technology acceptance, addressing adoption barriers and requirements, needed
innovations, market trends, etc. will be important. As for consumer acceptance of these advanced technologies,
Facebook founder Mark Zuckerberg predicted in 2016 that future VR headsets would look like regular glasses.
This can potentially increase adoption among a wider range of buyers, making them more socially acceptable,
useful, easy and natural to interact with, and even fashionably acceptable.

AR and VR are expected to become mainstream within the next five years and are expected to replace desktop
and mobile screens for most tasks performed on them today. The development and implementation of a mixed
reality (AR and VR) model can significantly change the way consumers view retailers in the future. This highlights
the importance of understanding consumer response to new technologies and provides an opportunity for industry
professionals. Virtual fitting rooms (VFRs) promise to revolutionize both retail and e-commerce, allowing
customers to try on clothes and mix and match accessories without physically being in a retail store.

Not surprisingly, customers who try on clothes in a fitting room have a conversion rate of 67%, while customers
who do not try on clothes have a conversion rate of only 10%. In addition, return rates of 15-50%, depending on
the product type, cause a significant financial loss to online sellers. It is interesting to note that about 60% of these
returns state that the reason for the return is a faulty fit. By ensuring the "perfect fit" for potential customers, VCRs
remove a significant barrier to online shopping and become the perfect vehicle to increase sales and reduce
revenue. Adding social media to VCRs allows shoppers to quickly receive tips and feedback (eg, Facebook) for a
more enjoyable and interactive shopping experience.

13
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